Budget airline Ryanair plans to focus growth away from UK airports to hubs in the European Union as a result of the EU referendum result.

The Dublin-based airline noted in a first quarter trading update, the UK decision to leave the EU was “a surprise and a disappointment” which it believes will lower economic growth, weaken consumer confidence and put downward pressure on fares until “at least” the end of 2017.

The airline added: “We will pivot our growth away from UK airports and focus more on growing at our EU airports over the next two years.

“This winter we will cut capacity and frequency on many London Stansted routes (although no routes will close) where we are already significantly ahead of our multi-year traffic growth targets.”

Ryanair, which has seen its share price drop nearly 20 per cent since the Brexit vote, said there could be further implications if the UK is unable to negotiate access to the single market and the open skies regulatory framework currently in place across the EU.

However the airline added it could benefit if “our UK registered competitors are no longer permitted to operate intra-EU routes, or must divest their majority ownership of EU registered airlines”.

Ryanair noted in first-quarter results, net income rose four per cent to euro 256 million (£214 million) on a two per cent increase in revenue to euro 1.69 billion (£1.4 billion).

The airline said it was hit by market volatility arising from recent terrorist events and repeated air traffic control strikes, notably in France, which led to almost 1,000 flight cancellations.

Ryanair has maintained its full-year profit guidance of between euro 1.37 billion and euro 1.42 billion but warned of “significant risks to the downside” for the remainder of the year from the Brexit vote.